A state compliance officer compares company policy with Virginia requirements during an annual compliance meeting. Which statement fits licensing and NMLS authority?
Correct Answer
D) Virginia Chapter 16 mortgage loans are personal, family, or household loans secured by one-to-four-family residential property in Virginia.
Virginia Chapter 16 mortgage loans are personal, family, or household loans secured by one-to-four-family residential property in Virginia and exclude loans secured by more than four-family residential property or property used for commercial or agricultural purposes.
Why This Is the Correct Answer
Virginia Chapter 16 mortgage loans are personal, family, or household loans secured by one-to-four-family residential property in Virginia. This is correct because Virginia Chapter 16 mortgage loans are personal, family, or household loans secured by one-to-four-family residential property in Virginia and exclude loans secured by more than four-family residential property or property used for commercial or agricultural purposes.
Why the Other Options Are Wrong
Option A: Apply the rule only after the Virginia regulator has already opened an examination.
Apply the rule only after the Virginia regulator has already opened an examination. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option B: Skip the Virginia requirement because the company already follows general SAFE Act procedures.
Skip the Virginia requirement because the company already follows general SAFE Act procedures. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option C: Treat licensing and NMLS authority as optional because the company has a general Virginia compliance policy.
Treat licensing and NMLS authority as optional because the company has a general Virginia compliance policy. is not correct because the governing rule requires the compliant answer shown in the explanation.
Memory Technique
VA -> va-company-licensing-offices-remote-location-nmls
Exam Tip
Virginia company questions test SCC/BFI and NMLS routing, Consumer Access, Chapter 16 license requirements, mortgage loan and office definitions, company fees, $25000 company bond, $200000 lender funds, additional-office approval, and remote-location controls.
Common Mistakes to Avoid
- -Using generic federal mortgage facts when Virginia Code, Virginia Administrative Code, SCC/BFI, or NMLS state-specific rules are being tested
- -Confusing Virginia individual MLO licensing or sponsorship with mortgage lender, broker, branch, remote-location, or company requirements
- -Treating Virginia bond, record, advertising, disclosure, lock-in, escrow, reporting, or enforcement requirements as optional
More UST Questions
In a pricing desk question, an audit analyst sees facts tied to Prohibited Misrepresentation. What should the file reflect?
An applicant previously had an MLO license revoked by a state regulator. Under the SAFE Act minimum standards for a new state-licensed MLO license, which statement is correct?
Which statement correctly distinguishes a license suspension from a license revocation?
A state regulator has issued an order suspending an MLO's authority effective immediately. The MLO has filed an appeal, but no stay has been granted. What should the MLO do?
An MLO license application asks whether the applicant has been the subject of a regulatory order. The applicant has a recent consent order that falls within the question. What is the proper response?
Why does NMLS maintain licensing and enforcement information that participating regulators can access?
A regulator issues a final license suspension without giving the MLO notice of the alleged violation or any opportunity to respond, even though applicable law requires both. What issue is presented?
A regulator finds that an MLO charged consumers prohibited fees. Which set of actions is consistent with the enforcement tools contemplated by Regulation H?
An MLO's license status in NMLS changes to suspended, with no stay or reinstatement shown. What is the immediate operational effect?
Which fact most directly supports disciplinary action against an MLO rather than merely a request for additional application information?
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